CP19/17: Consultation on mortgage advice and selling standards

Open consultation: CP19/17
07/05/2019
Consultation closes
07/07/2019
Policy Statement
Q4 2019
Q4 2019

This consultation paper (CP) contains proposals for changes to our mortgage advice and selling standards to address 3 harms identified through the Mortgages Market Study.

These were:

  • That our advice rules and guidance are a barrier to the development of tools to help consumers choose and buy a mortgage.
  • That consumers who would like to buy a mortgage on an execution-only basis find it difficult to do so because they are diverted to advice and because execution-only sales channels are not always easy to use.
  • That many consumers are overpaying for their mortgages, even when they get advice.

Read CP19/17

The proposals in this CP are one part of a package of remedies arising from the Mortgages Market Study. These remedies aim to work together to support our objectives to ensure consumers have the information and support they need to make informed choices about how they buy a mortgage, and help ensure they get good value from advice.

We think they will help address the harms identified above by making it easier for firms to present options to consumers without giving regulated advice, enabling firms to make their execution-only sales channels easier to use and by requiring advisers to take account of price when choosing between suitable mortgages.

Who this applies to

This CP should be read by:

  • mortgage firms
  • trade bodies representing these firms
  • consumer bodies

Next steps

This consultation has now closed. We will consider your feedback and intend to publish our rules in a Policy Statement late in 2019.